translation gain

Translation Gain

The gain that occurs when one exchanges one floating currency for another, then back into the first currency after it has become weaker. For example, suppose one has 1,000,000 U.S. dollars and exchanges them for 500,000 British pounds; this means the exchange rate was two dollars per pound. Later, if one still has those 500,000 pounds when the exchange rate is three dollar per pound and exchanges them back to dollars, suddenly one has $1,500,000. In this case, the translation gain is $500,000.

translation gain

The gain that results when a firm translates amounts stated in one currency into terms of another currency. A U.S. company that translates German marks into U.S. dollars following a period of a weakening dollar will report a translation gain because the marks exchange for a greater number of dollars.

6 billion partially attributable to the positive impact of a translation gain, the inclusion of the Nigerian business as well as AFGRI Equipment in Zimbabwe and AFGRI Milling s inclusion for a full year.

The Company believes excluding gain from foreign currency translation and its related tax effect from its non-GAAP financial measures is useful for its management and investors as such translation gain is not indicative of the Company's core business operations and will not result in cash settlement nor impact the Company's cash earnings.

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